First, in year 2000 the federal budgetaccounted for almost all increase in the revenues of the enlarged government.Thus, in year 2000 tax revenues of the enlarged government made 37.9 per centof GDP (34.4 per cent of GDP in 1999), while the total revenues were at 40.4per cent of GDP (36.9 per cent of GDP in 1999). At the same time, the increasein the revenues of the federal budget made 2.6 percentage points (up to 15.2per cent of GDP), while territorial budgets accounted only for the growth by0.6 percentage points (up to 12.6 per cent of GDP), and revenues ofextra-budgetary funds increased by 0.3 percentage points (up to 10.1 per centof GDP). This unevenness may be chiefly attributed to the fact that thefavorable oil and natural gas price situation did not directly affect therevenue base of territorial budgets and extra-budgetary funds.

Second, the uneven growth of revenuesresulted in some structural changes: the share of federal budgetary revenues inthe revenues of the enlarged government increased from 37 per cent to 40 percent, while the revenues of territorial budgets decreased from 39 to 37.5 percent, and those of extra-budgetary funds diminished from 29.3 per cent to 27.7per cent.

Third, the 2.8 percentage points decrease inthe expenditures of the enlarged government (down to 35.4 per cent of GDP)accompanied by a growth in revenues resulted in the increase in the primaryproficit by 6.3 percentage points. The expenditures diminished unevenly: whileexpenditures of the federal budget and of extra-budgetary funds decreased by1.1 percentage points and 1.5 percentage points respectively, the expendituresof territorial budgets increased by 0.2 percentage points. Social fundsaccounted for the decrease in the expenditures of extra-budgetary funds, whilethe expenditures of road funds remained at 2 per cent of GDP.